About to send CA ITS...please Help!

I've been dealing with a particular CA and I need some advice on how to proceed:

1. I've sent validation letters in May and July.
2. CA verified 3 times without validating with me
3. Received a letter from CA stating that they were marking account in dispute status and would stop active collection efforts
4. They've verified since sending me this letter
5. They are not licensed/bonded in my state -- requirement
6. The DOLA is 12/2000 and SOL in my state is 6 years
7. This TL is still on my report and in a permanent dispute status.

I'm going to send the small claims paperwork for a suit claiming FCRA/FDCPA violations to the CA with 5 days to settlement or I file them.

Am I on the right track?
Am I risking a suit and having them valiate when I go to court -- it's a sizeable amount showing that I owe ($4,000). The maximum amount I can sue them for in small claims here is also $4,000.

Whew...that was a mouthful.

Thanks! I'm kind of desperate, so ANY information/enlightenment you can expound would be most appreciated.